ON-LINE AND ADAPTIVE OPTIMUM ADVERTISING CONTROL BY A DIFFUSION APPROXIMATION.

Research output: Contribution to journalArticlepeer-review

Abstract

A diffusion approximation to a stochastic advertising model of the M. L. Vidale-H. B. Wolfe type is formulated. This formulation allows solution of problems of optimum and on-line sales forecasting, parameter identification, and advertising control under uncertainty. Approximations are suggested and simulation used to forecast the probabilistic response of sales to an advertising program. Examples contrasting the stochastic process and the diffusion approximations approaches are included.

Original languageEnglish (US)
Pages (from-to)890-907
Number of pages18
JournalOperations Research
Volume23
Issue number5
DOIs
StatePublished - 1975

ASJC Scopus subject areas

  • Computer Science Applications
  • Management Science and Operations Research

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